Customs duty benefits announced for eligible imports from New Zealand under Notification No. 32/2026-Customs

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 32/2026-Customs dated 16th October, 2026 to operationalise the initial set of tariff concessions promised under the India–New Zealand Free Trade Agreement. Acting under section 25(1) of the Customs Act, 1962, the Central Government has notified reduced rates of basic customs duty, Agriculture Infrastructure and Development Cess (AIDC) and, in some cases, Health Cess for specified products originating in New Zealand, subject to conditions.

This notification lays out a structured framework through four separate tables (Table I to Table IV) and an Annexure containing conditions. The concessions apply only where the goods are proven to be of New Zealand origin as per the applicable rules of origin.

Legislative basis and overarching framework

The notification is issued under:

section 25(1) of the Customs Act, 1962;
with reference to AIDC levied under section 124 of the Finance Act, 2021 (13 of 2021); and
Health Cess levied under section 141 of the Finance Act, 2020 (12 of 2020).

The structure of the concession scheme is as follows:

Table I – Concessions on basic customs duty (BCD), AIDC and Health Cess at specified capped rates;
Table II – Concessions on BCD and AIDC only, at reduced rates;
Table III – Concessions on BCD and AIDC, subject to fulfilment of conditions listed in the Annexure;
Table IV – Tariff Rate Quota (TRQ) based concessions, providing in-quota BCD and AIDC rates for specified annual quantities, again subject to Annexure conditions.

The actual list of tariff lines, descriptions, rates and quantities are set out in the respective tables appended to the notification and must be consulted for item-wise application.

Scope of exemption and categories of goods

1. Goods covered under Table I – BCD, AIDC and Health Cess concessions

For the products enumerated in Table I, the Central Government has granted the following relief when such goods are imported from New Zealand and fall under the relevant Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as mentioned in column (2) of Table I:

Exemption from basic customs duty to the extent the statutory rate exceeds the rate prescribed in column (4) of Table I;
Exemption from AIDC under section 124 of the Finance Act, 2021 to the extent the standard rate exceeds the rate prescribed in column (5);
Exemption from Health Cess under section 141 of the Finance Act, 2020 to the extent the applicable rate exceeds the rate prescribed in column (6).

In effect, for these items, the assessee will pay BCD, AIDC and Health Cess at or below the maximum rates stipulated in Table I, provided the origin and other requirements are met.

2. Goods covered under Table II – BCD and AIDC relief

For the products listed in Table II, falling under the tariff lines indicated in column (2) of that table, the notification provides:

Concession in basic customs duty such that duty is restricted to the rate mentioned in column (4);
Concession in AIDC such that the cess is limited to the rate specified in column (5).

Health Cess is not dealt with in Table II, which means normal Health Cess provisions will apply where relevant, unless exempted by any other notification.

3. Goods covered under Table III – Conditional BCD and AIDC concessions

For items specified in Table III, the Central Government has similarly reduced:

basic customs duty to the corresponding rate in column (4); and
AIDC to the rate shown in column (5),

but these concessions are contingent upon fulfilment of specific conditions.

CBIC notifies first phase of duty concessions for imports from New Zealand under India–New Zealand FTA